iPhone 5 launch results in new weekend record for Chinese market

Apple sold over 2 million units in an increasingly important smartphone market.

Apple's push into China is making some inroads, as indicated by the iPhone 5 launch in China this past weekend. The company announced Monday morning that it sold over 2 million iPhone 5 handsets in greater China in the last three days—a new record launch in that market for Apple. The number is particularly impressive given that the iPhone 5 isn't available on China's largest carrier, China Mobile.

"Customer response to iPhone 5 in China has been incredible, setting a new record with the best first weekend sales ever in China," said Tim Cook, Apple's CEO. "China is a very important market for us and customers there cannot wait to get their hands on Apple products."

Apple has increasingly looked to China as one of its top potential markets for growth. In fiscal 2012, 15 percent of Apple's revenue came from sales of iPhones, iPads, and Macs there, for a total of $23.8 billion.

To help bolster demand for the iPhone, Apple has been translating its developer documentation into Chinese, hoping to attract more native Chinese developers making apps for Chinese users. Apple has also accelerated its typical iPhone rollout, extending into 100 countries in just three months.

Over the weekend, there was concern that demand in China was far lower than expected, as few turned out to buy an unlocked handset at Apple's retail stores for the equivalent of $850 or more. However, customers apparently swamped mobile carriers' stores over the weekend, which offer subsidized handsets for as little as $96.

I wonder if this news is going to stop the hemorrhaging of the Apple share price, or if this drop in share price is simply a correction to where it should be.

Right now, the stock going down is a reflection of the taxes going up in 2013, so people are dumping their investments for as much profit as they can while paying as little tax on the gains as possible.

2m smartphones is only about 1% of the total smartphone market in China. I mean, it's a hell of a big absolute number (and they sell at around USD $850 equivalent, so fairly similar to the cost in the US for an unlocked iPhone 5 16GB) but with 1bn+ mobile subscribers in China and 200m smartphones, the numbers that sound large here in the West take on a different meaning over there.

You have to look at flow of events. The article you're referring to quotes a "survey" about pre-orders, which has nothing to do with actual numbers. Apple posted sales of 2 million iPhone5 instead of the "expected" 300 000.

"conducted a survey which indicated that sales of the iPhone 5 in China would be low.""the lines of consumers waiting to purchase the new iPhone were much shorter than they were on previous model releases"

That's all the evidence they had. And who needs more evidence when you want to manipulate a stock's price. This answers the first post too.

Funny thing about the line argument - they predicted low sales of the iPad 3 in China because there were no riots like before - even after Apple had just said a few days before that they had taken measures so there wouldn't be riots.

I wonder if this news is going to stop the hemorrhaging of the Apple share price, or if this drop in share price is simply a correction to where it should be.

I think this merits additional response.

I don't believe either of what you say is relevant nor true. In other words, the news may influence investors to put additional funds into AAPL, but at the same time investors have made so much money on AAPL that they may just be dumping it in order to secure profits.

Correction, as you say, is also incredibly unlikely given their current PEG ratio is estimated at 0.5, GOOG is at 1.31, and MSFT is 1.05, meaning that Apple is comparatively underpriced.

In other words, Apple is expected to continue growing, making the stock price an overreaction and the 'correction' will be return to a higher value if the PEG ratio of 0.5 is accurate.

This story is Bullshit and as expected from the Apple Media HACKS at ARS! Local news reports from CHINA News Agencies report the opening was a flop and sales are NOT enthusiastic! My wife is Chinese and and works for Taiwan Times News in the Beijing office!

So please give us more information. What is the actual sales of the iPhone 5 launch in China?

Apple has an officialpress release on iPhone 5 sales, meaning of course they are liable for fraud to investors and shareholders if they did not in fact sell 2m iPhones this past weekend.

2m smartphones is only about 1% of the total smartphone market in China. I mean, it's a hell of a big absolute number (and they sell at around USD $850 equivalent, so fairly similar to the cost in the US for an unlocked iPhone 5 16GB) but with 1bn+ mobile subscribers in China and 200m smartphones, the numbers that sound large here in the West take on a different meaning over there.

It's an indicator of Apple's actual position that when they sell 2 million units in China, all kinds of people are looking for a way, any way, to make this look bad. 2 million in just China compared to 5 million across multiple rich Western countries over a similar launch period is not bad.

gmerrick wrote:

I wonder if this news is going to stop the hemorrhaging of the Apple share price, or if this drop in share price is simply a correction to where it should be.

Sober analysts have done the numbers (the same calculations as for any other company) and conclude that Apple remains under-valued.

My personal perspective is "meh" since anyone who bought at 100, 200, 300, or 400 is still seeing returns that are far better than any other stock out there. Yes, I bought at the lower end of that range, so for me a "free fall" to 500 still means an amazingly profitable buy (on paper of course, until I sell).

The only people panicking about Apple shares are churning day-traders and other deep-pocketed short-term opportunists for whom I have little sympathy. If you can't afford to go long, you shouldn't be buying stocks.

2m smartphones is only about 1% of the total smartphone market in China. I mean, it's a hell of a big absolute number (and they sell at around USD $850 equivalent, so fairly similar to the cost in the US for an unlocked iPhone 5 16GB) but with 1bn+ mobile subscribers in China and 200m smartphones, the numbers that sound large here in the West take on a different meaning over there.

It's an indicator of Apple's actual position that when they sell 2 million units in China, all kinds of people are looking for a way, any way, to make this look bad. 2 million in just China compared to 5 million across multiple rich Western countries over a similar launch period is not bad.

Its also worth noting that this is sales of iPhone5's, not iPhone sales overall. How many of those 200m smartphones are *some kind* of iPhone?

2m smartphones is only about 1% of the total smartphone market in China. I mean, it's a hell of a big absolute number (and they sell at around USD $850 equivalent, so fairly similar to the cost in the US for an unlocked iPhone 5 16GB) but with 1bn+ mobile subscribers in China and 200m smartphones, the numbers that sound large here in the West take on a different meaning over there.

It's an indicator of Apple's actual position that when they sell 2 million units in China, all kinds of people are looking for a way, any way, to make this look bad. 2 million in just China compared to 5 million across multiple rich Western countries over a similar launch period is not bad.

Its also worth noting that this is sales of iPhone5's, not iPhone sales overall. How many of those 200m smartphones are *some kind* of iPhone?

Put another way, in June they held 10% for the quarter, or about 4m out of 44m. Assuming then that this quarter is the same and China moves 44m smartphones, in one weekend they have 5% of the smartphone market (not the 1% you put). Assuming they continue to sell about 2m a week for the rest of December and you have a total of approximately 8m or so for December, or 18%, not 1%, as you want to believe.

2m smartphones is only about 1% of the total smartphone market in China. I mean, it's a hell of a big absolute number (and they sell at around USD $850 equivalent, so fairly similar to the cost in the US for an unlocked iPhone 5 16GB) but with 1bn+ mobile subscribers in China and 200m smartphones, the numbers that sound large here in the West take on a different meaning over there.

Hell, having 1% of a market with any since device model is already impressive actually. Doing that in 3 days is actually a statistic of note. Apple's original plan in the USA was 1% after 12 months with the iPhone 2G. Puts it in perspective.

2m smartphones is only about 1% of the total smartphone market in China. I mean, it's a hell of a big absolute number (and they sell at around USD $850 equivalent, so fairly similar to the cost in the US for an unlocked iPhone 5 16GB) but with 1bn+ mobile subscribers in China and 200m smartphones, the numbers that sound large here in the West take on a different meaning over there.

Moron! 2 million phones in 3 days, just 300,000 phones per week times 52 weeks equals 15,600,000 million phones times 300 dollars each equals 4.7 billion dollars per year divide that by four equals 1.17 billion which is half of Googles profit in a quarter in one country yes sir, you like the Wall Street-tech pundits are a Moron, Google and Amazon profit wise just don't come close. Even at 200 dollars per phone that is 25% of Google profit per quarter and that is just for the iPhone, iPads and Mac's are not included.

Hell, having 1% of a market with any since device model is already impressive actually. Doing that in 3 days is actually a statistic of note. Apple's original plan in the USA was 1% after 12 months with the iPhone 2G. Puts it in perspective.

But let's not be bogged down with the way rival companies show their dominance. Apple doesn't, hasn't, and probably never will care about massive market share. They care about turning a profit and keeping their customers and keeping them happy ones, with any new customers being a nice bonus. What good is having 90% of a market if you're making only 10% of the cash that the guy owning 10% of the market has?

Nominal and even percentages amount to naught if you're not actually making money. I think it's safe to say that the fear mongering prior to these released numbers show, again, that analysts tend to be full of shit.

2m smartphones is only about 1% of the total smartphone market in China. I mean, it's a hell of a big absolute number (and they sell at around USD $850 equivalent, so fairly similar to the cost in the US for an unlocked iPhone 5 16GB) but with 1bn+ mobile subscribers in China and 200m smartphones, the numbers that sound large here in the West take on a different meaning over there.

LOL... do you expect any phone to sell more then 1% of a major market in 2 days? Seriously.

2m smartphones is only about 1% of the total smartphone market in China. I mean, it's a hell of a big absolute number (and they sell at around USD $850 equivalent, so fairly similar to the cost in the US for an unlocked iPhone 5 16GB) but with 1bn+ mobile subscribers in China and 200m smartphones, the numbers that sound large here in the West take on a different meaning over there.

It's an indicator of Apple's actual position that when they sell 2 million units in China, all kinds of people are looking for a way, any way, to make this look bad. 2 million in just China compared to 5 million across multiple rich Western countries over a similar launch period is not bad.

gmerrick wrote:

I wonder if this news is going to stop the hemorrhaging of the Apple share price, or if this drop in share price is simply a correction to where it should be.

Sober analysts have done the numbers (the same calculations as for any other company) and conclude that Apple remains under-valued.

My personal perspective is "meh" since anyone who bought at 100, 200, 300, or 400 is still seeing returns that are far better than any other stock out there. Yes, I bought at the lower end of that range, so for me a "free fall" to 500 still means an amazingly profitable buy (on paper of course, until I sell).

The only people panicking about Apple shares are churning day-traders and other deep-pocketed short-term opportunists for whom I have little sympathy. If you can't afford to go long, you shouldn't be buying stocks.

While its great you see some profit. A gain is a gain. But dont forget that you've also lost by holding on to this stock. It was at $700 and you are still holding on to it at around $500. So as much as a gain is a gain you just lost $200 and a loss is also a loss. So you have faith in a company and thats great. Which meant in the stock market you should have sold high and rebought your favorite stock at the price its at now. Its not that "If you can't afford to go long, you shouldn't be buying stocks." People are profiting on the rise AND the fall of these stocks. So your statement makes little sense. It sounds like you are treating this like a savings account. Which its not.

I've seen just as great of gains in Google stocks than i have in Apple. If you follow the ups and down of either. But Google shows far more stability and drive in innovation(the future). Thats the real story here about Apple. Its getting boring to the general consumer. China is excited because they finally had the OPTION to buy one. I'm sure if McDonalds just opened their doors for the first time they would have lineups out the door as well.